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Audi RS3 spy shots foreshadow an ultra-hot hatch

Not all vehicle prototypes and mules require heavy camouflage - sometimes they can be hidden in plain sight. That's probably what Audi was hoping for while testing its new RS3 wearing S3 duds, but thanks to some visual and audible telltales, our spy photographers were able to recognize this as a precursor to the marque's ultra-hot hatch testing near the Nürburgring.
Our photographer noticed the signature exhaust note of a five-cylinder engine, which suggests the RS3 could borrow its motivation from the excellent TT RS. Producing at least 340 horsepower, this 2.5-liter turbo powerplant could be the perfect answer for the new A45 AMG from Mercedes-Benz. The big brakes on this RS3 mule give us our best idea about the car's high-performance intentions, with Audi RS wave brake rotors and six-piston calipers peering out from behind the oversized wheels.
In production form, the RS3 should have a much different appearance from what you see here, with sportier design cues including oval-shaped dual exhaust outlets and a more aggressive front fascia. While we're still waiting for our first taste of the S3 in the North America, we'll be holding our breath for the RS3 to make its way here, as well.

VW confirms development of 10-speed dual clutch, 134-hp/liter diesel

Each year, the Vienna International Motor Symposium showcases some of the up-and-coming technologies automakers are engineering for the use in passenger cars, and Volkswagen AG CEO Martin Winterkorn revealed some big developments VW is working on for its future products. Winterkorn discussed a multi-faceted approach that VW is looking to reduce its fleet fuel consumption and exhaust emissions.
Some of the bigger news he discussed included a "high-performance" diesel engine that will produce 134 horsepower per liter and a 10-speed DSG automatic transmission. While no specific applications were mentioned, we can only hope this is for the Audi R4 we keep hearing about.
Another topic he touched on that caused us to perk up our ears was had to do with VW's plug-in hybrid technology. While we know the PHEV versions of the Audi A3 and Porsche Panamera are on the way, Winterkorn also said that these two models will be followed up by Golf, Passat, Audi A6 and Porsche Cayenne plug-in models. Scroll down for a press release highlighting the automaker's future fuel-saving initiatives.

Audi and Mercedes both outsell BMW in January

There won't be any celebrations in Munich this month, as BMW was outsold by arch-nemeses Audi and Mercedes-Benz. The Bavarian company finished behind Audi in January, which took the top spot for the first time since June of last year, Bloomberg reports. Ingolstadt rode high on a 10-percent bump in sales, while Mercedes saw a larger 14 percent increase. BMW, meanwhile, only saw a modest 6.3-percent sales increase last month, thanks in large part to its struggles in China. The company's sales there increased at about half the rate of its chief competitors, with a 7.9-percent jump to Mercedes and Audi's roughly 15-percent increases. Perhaps more worrying for BMW, though, is that this could become something of a trend for the company. According to Bloomberg, issues with Chinese dealers who cancelled orders over sales targets and bonuses combined with what the publication calls aging models, could spell bad news for the German marque. "This looks like a pretty significant decline in growth compared to Mercedes and Audi," Bankhaus Metzler analyst Juergen Pieper told Bloomberg. "I think this will continue during the next few months." News Source: BloombergImage Credit: Matthias Schrader / AP Earnings/Financials Audi BMW Mercedes-Benz